To ensure that you have certainty over the maximum amount that will have to be remitted to us throughout the agreement, we can agree cumulative caps that apply to predefined periods. Once you hit the Cumulative Remittance Cap, you don’t have to make any remittances until the subsequent period begins (whichever period is agreed - 7, 14, or 30 days) - at which stage the Cumulative Remittance Cap for that period will apply.
The Cumulative Remittance Caps increase over the length of the advance, so if you do not hit your cap for the preceding period, any unused portion will carry over to the next period.
For example:
Week | Period (days) | Cumulative Remittance Cap | Difference | Weekly Remitted | Total remitted | Cap hit? |
1 | 0 - 7 | $10,000 | N/A | $10,000 | $10,000 | Yes |
2 | 0 - 14 | $20,000 | $10,000 | $10,000 | $20,000 | Yes |
3 | 0 - 21 | $50,000 | $30,000 | $28,000 | $48,000 | No |
4 | 0 - 28 | $60,000 | $10,000 | $8,000 | $56,000 | No |
5 | 0 - 35 | $70,000 | $10,000 | $14,000 | $70,000 | Yes |
Understanding the Cumulative Remittance Caps table
Week/Month: This displays a number indicating the current week/month against the relevant period. For simplicity and for alignment with periods, a week is 7 days and a month is 30.
Period (days): This indicates the timeframe for which each cap is relevant. Each period starts at 0 and increases in a weekly/biweekly/monthly cadence, as the period is cumulative.
Cumulative Remittance Cap: This is the maximum amount that you will remit for each defined period.
Difference: This indicates the difference between each period’s Cumulative Remittance Cap and that of the previous period.